Top 10 Advertising Compliance List:
Make Sure Your Comparative Advertising Claims Are Fully Substantiated and Are Not False or Deceptive

Description

Do you advertise on the Internet or any of the new media? Are you a large advertiser making a broadcast network buy? No matter where you advertise, there are many steps that you should take first--before you create that ad or place that media buy. And, of course, you should consult with a legal professional before you begin any advertising campaign. This article is a useful review of 10 key areas you ought to consider when you're reviewing your advertising to make sure it complies with the numerous laws, rules, regulations and guidelines that may affect your ads.

Item #5. Make Sure Your Comparative Advertising Claims Are Fully Substantiated and Are Not False or Deceptive.

Because of the great benefits inherent in comparative advertising, FTC formally stated its pro-comparative advertising policy in 1979. (As a practical matter, that policy had been in effect since 1974.) Basically, FTC looks at comparative advertising in much the same way as other types of advertising. Ultimately, the question is whether the comparative advertising claim has a tendency or capacity to be false or deceptive. The level of substantiation required is also viewed as being the same level required in other types of ads.

Nevertheless, because a competitor is involved, you should be certain that your ad claims possess sufficient clarity and, if necessary, appropriate disclosures to avoid deception to consumers.

Keep in mind that your competitor is watching or reading your comparative ad. And your competitor can use the powerful Lanham Act to redress any wrongs under that Act. Indeed, the Ninth Circuit affirmed a $40 million damages award in one noted advertising law case.